FINANCIALS: DBK-Postbank: New Settlement Immaterial But Positive Trend Indicator

Deutsche Bank (DB: Baa1/BBB/A-) has reached settlement with a key Postbank claimant. Whilst immaterial in isolation, this is another step (after last month’s 60% settlement) towards ending this legal overhang and a positive indication ahead of next month’s court hearing. 

• DBK has reached settlement with a “key plaintiff” in the Postbank lawsuit (Effecten Spiegel), paying out EUR8.8m. Whilst a very small part of the overall situation, this one is important as Effecten was the first shareholder to pursue DBK for more money and, for several years, was the only plaintiff.
• Last month (21-Aug), DBK settled with around 60% of the outstanding claimants for a value lower than the bank had already provisioned for, therefore releasing EUR430m into DBK’s income statement.
• DBK equity rose yesterday in anticipation of further settlements and releases, although the timing and magnitude of these remains uncertain. DBK is in court with some of the remaining shareholders in October.

Key date: 23-Oct – Postbank case hearing in Cologne court and 3Q24 results